Refinance Scheme for Working Capital Financing of SEs and low end MEs

Purpose of Facility:

Term Finance Facility to meet the working capital requirement of selective SME sectors.

Scope Eligibility:

• Financing will be initially available to meet the working capital requirements of below mentioned SME sectors:Information Technology (IT)Gems JewelrySurgical GoodsFurnitureLeather IndustryData ProcessingPrinting PackagingFruits, vegetables and food processing packaging
• All small enterprises (SEs) as defined in SBP’s Prudential Regulations (PRs) will be eligible under the scheme.
• Medium Enterprises (MEs) with annual sales of up to Rs. 300 million will be eligible under the scheme.

Financing Limits:

• Maximum financing limit for SEs is the same as defined in SBP’s PRs for SME financing.
• Maximum financing limit for MES is Rs. 50 million.
• Bank Alfalah shall establish the borrowing limits of eligible borrowers keeping in view credit requirements, cash flows, repayment capacity and risk profile of the borrower.

Financing Tenure:

Maximum loan tenure will be one year

Rate of Mark-up:

Subsidized mark-up rate of 6% p.a.